Check-cashing/loan system using a variable amount electronic funds card

ABSTRACT

A rechargeable and disposable electronic funds (cash card) issued by a non-financial facility, such as a check cashing facility, a payday loan facility or a short term loan facility, is disclosed where the card substitutes for the cash and is labeled in the name of a bank type financial institution with which the non-financial facility has a relationship. The card can be charged with a variable amount on money. When used at a store for a purchase it can act like a debit card but need not have a name of the holder associated with (or embossed on) it like a gift card, so the user can remain anonymous. The card can be upgraded to a rechargeable or debit/credit card. The card can draw on an account or sub account of the check cashing service or of the bank.

CROSS-REFERENCE TO RELATED APPLICATION(S)

This application is a continuation of U.S. patent application Ser. No.12/195,818, filed Aug. 21, 2008, now allowed, which is related to andbased on U.S. provisional application entitled A Check-Cashing/LoanSystem Using A Variable Amount Electronic Funds Card having Ser. No.60/968,136, by Beckers, filed Aug. 27, 2007, all of which areincorporated herein by reference.

BACKGROUND

1. Field

The embodiments discussed herein are directed to electronic transactioncards.

2. Description of the Related Art

Check cashing services are a type of transaction that can be improved.

SUMMARY

It is an aspect of the embodiments discussed herein to provide improvedcheck cashing services.

The above aspects can be attained by a system that includes thecomponents and processes as described in the embodiments herein.

These together with other aspects and advantages which will besubsequently apparent, reside in the details of construction andoperation as more fully hereinafter described and claimed, referencebeing had to the accompanying drawings forming a part hereof, whereinlike numerals refer to like parts throughout.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates a check cashing and payday loan system using avariable amount electronic funds card issued by a financial institution,such as a bank.

FIG. 2 illustrates a process performed at a check cashing/loan facility.

FIG. 3 illustrates a financial institution (or bank) process.

FIG. 4 illustrates another process of the financial institution.

FIG. 5 depicts a database or data structure of the facility.

FIG. 6 depicts a graphical user interface or display of the facility.

FIG. 7 illustrates a sample transaction.

DETAILED DESCRIPTION OF THE EMBODIMENTS

Check cashing services usually cash a “pay check” for a person who doesnot have a checking account (possibly an illegal immigrant or a personwho is too “poor” for a bank to seek as a customer) and the servicecharges a fee that is relative to the size of the check, the payer“reliability”, etc. to account for the risk to the service in providingor handing over cash and the pay check later bouncing. Payday loancompanies or services provide short term loans to individuals secured bythe individual writing a check for the loan amount, a service charge andinterest to the company that is dated (and thus cashable) on the datethat the individual gets paid whether by paycheck or electronic deposit.Short-term loan companies make short-term loans that are due within ashort period of time, such as a month, and the loan typically includes aservice charge and interest for the loan period.

The embodiments discussed herein comprise a rechargeable and disposablecash card issued by a check cashing service or loan service where thecard can substitute for the cash and is labeled in the name of a banktype financial institution, such as Citibank or Bank of America. Thecard can be “charged” with a variable amount on money dependent on thesize of the check, any reserve, etc. or the size of the loan. Theservice can have a secure link to the bank and an agreement with thebank to be able to issue such cards with the bank name on them andestablish these types of cash card “accounts”.

When used at a store for a purchase in front of the card holder's“friends” the card could look a lot like a credit/debit card is beingused, raising the “prestige” of the user. In action, it can be similarto a debit card but need not have a name of the holder associated with(or embossed on) it like a gift card, so the user could remain“anonymous” (no social security number required), sometimes an importantfeature to the underground economy. The name, etc. can be added later asthe card is upgraded.

The card can draw on an account or sub account of the check cashingservice or of the bank, allowing the check cashing service/bank to “use”the money until debited (free use of the money). If the check “bounces”(for example, for insufficient funds), the check cashing service could“retrieve” any money remaining in the sub account, which reduces therisk somewhat. When used for payday loans, the loan amounts could beregistered with the bank via an account identifier allowing the serviceto “collateralize” the loans with the bank and receive more funds forsuch services in the form of a loan on the receivables.

The card could be recharged when the user “cashes” another check at thecheck cashing service (or bank) rather than expire when empty like agift card. If not recharged after a period of time, the card wouldexpire and could be discarded. When the card is “empty” (and not anupgraded version as discussed below) it could also be discarded andexpires. The users name, address, etc. could be added to the card(re-embossed or a substitute card issued by the check cashing service orthe bank) at any time so that it would no longer be anonymous.

If the user is a frequent customer or builds up to a “reliablecustomer”, (and, as appropriate, the card is no longer anonymous) thecard could change or be upgraded over time into a cash/debit/creditcard. In such a situation, say after cashing 10 checks for $500, thecard could have a credit limit of say $50 added to it. Maybe after 20recharges, the limit would go to $100, etc. The reliable use of the cardcould result in the bank ultimately issuing or converting it to a “real”credit card with a debit card feature. It could also have a savingsaccount feature that would automatically deposit a percentage of arecharge amount into a savings account automatically each time it isrecharged, if activated by the user.

The cash that can be provided by the check cash, payday loan and loancompanies discussed above can be subject to theft. The embodimentsdiscuss herein reduce the risk of theft.

In a typical situation, a check holder or user 22 (see FIG. 1) comes into a check cashing facility 24 (or payday loan service), cashes a check26 (or obtains a loan) and leaves with an amount of cash that is theamount of the check (or loan) less a service fee (and interest if apayday loan). In the embodiments discussed herein, instead the usercould leave with an electronic card 28 “containing” the “variable”amount of cash the user would have normally received from the facility24. The card 28 can be a “one time use” cash card issued on behalf of afinancial institution 30, such as a bank, associated with the checkcashing facility 24 where the user is anonymous and with the user takingthe risk of the loss of the card 28 and where the card “expires” and isno longer usable when the card balance reaches zero. The card 28 can be(or can be upgraded into) a “rechargeable” cash card issued on behalf ofthe financial institution 20, such as the bank, associated with thecheck cashing facility 24 where the user 22 is anonymous and with theuser 22 taking the risk of the loss of the card and where the card canhave additional money/funds added to it when the user 22 “cashes”another check at the check cashing facility 24. The card 28 can be (orupgraded into) a debit card issued on behalf of the financialinstitution 30, such as the bank, (or facility 24) with which the checkcashing facility 24 has a relationship where the user 22 is notanonymous and where if the card 28 becomes lost or stolen, the user 22can be reimbursed for any losses and where additional funds can bedeposited into the card account at the check cashing facility 24 or thefinancial institution 30. The card 28 can also be (or be converted into)a combined debit/credit card where again the user 22 is identified,losses are protected and some “overdraft” is allowed based on a creditlimit established for the user 22. The card 28 can also be or convertinto a credit card if the user establishes a formal banking accountrelationship with the financial institution 30 (or facility 24) andstill be used for depositing funds into the account of the user 22 atthe financial institution 30 (or facility 24).

In the situation discussed above, the facility 24, when presented withthe first check 26 to be cashed by user 22 or with the payday loanrequest, has the facility operator 31 determine an amount that the user22 will receive after the check cashing fee, loan fee and/or interest,etc. is considered. If the user 22 desires to have an electronic cash orfunds card 28, the facility operator 31 using a graphical user interface(GUI) (see FIG. 6) of a check cashing facility computer 32 completes acard request form indicating a type of card, and amount of money to beprovided on the card, and as needed, depending on the type of card, theusers identity, address, social security number, etc. The computer 32can be a typical desktop type machine. As an example, the user maypresent a $100 check and the amount to be provided on the card may be$90 ($100 less a $10 fee) or the user may present a $200 check and theamount to be provided on the card may be $185 (200-15 fee). Or the usermay present a check stub from a previous paycheck where the stubindicates a paycheck amount of $500, the amount placed on the card couldbe $470, taking into account a fee of $25 and interest of $5. That is,the amount placed on the card is variable. In addition, depending on therules of the facility 24, the card may have a “hold back amount” orreserve amount of money that the user 22 does not have access to for afew days after the card is activated, so that the check can clear. Forexample, if the amount to be placed on the card 28 is $300, there may bea hold back of 10% or $30 in this example, for a period of 3 days.During the three days if the user 22 attempted to purchase more than$270 of merchandise, an insufficient funds message would be provided tothe user 22. The computer 32 can store this information in a database 34(see FIG. 5) of the facility 24.

The facility computer 32 can then send a card request transaction 35over a secure channel of a communication network 36, such as theInternet, to a financial institution computer 38, such as to a bank overa channel such as a home banking or ATM channel. The computer 38 can bea server type machine or a network of machines. The card requesttransaction indicates the type of card requested, the amount of money,etc. The transaction is stored in a database 40.

The financial institution computer 38 can debit a check/loan facilityaccount in the database 40 of the institution 38 for the amount, createan account for the card of the type requested, including an amount offunds credited to the card, a card identifier number (account number),user identity information, check cashing facility identificationinformation, security information, etc. and (if approved as needed)transmit an authorization transaction 41 to the facility computer 32.

The computer 32 can store the authorization transaction 41 and theinformation thereof, such as the card number, amount of moneyauthorized, identity, etc., in the facility database 34. Thisauthorization transaction 41 authorizes the facility computer 32 at thecheck cashing company or payday loan company, to produce an electroniccard via a card machine 42. The computer 32 can create any needed cardrecord to be stored in database 34 that includes the amount of money“on” the card, the type of card, as needed a card ID, user identity,etc. and can send the record to the card machine 42 with a command toproduce the card. As needed by the type of card, the card machine 42 canproduce an electronic card 28 with any needed embossing of card numberand user name, encoding/encrypting of a card electronic/magnetic stripeor smart card chip with card number, amount, financial system routingnumber of the institution computer, and security information, such as apassword, etc.

A card reader 44 can then scan the card 28 and the information on thecard can be displayed on the facility computer 32 to allow the operator31 to confirm that the card 28 is the type requested and includes therequested amount of money, and other information needed for the type ofcard. When the produced card 28 is verified, the cashing facilitycomputer 32 can send an issue confirmation transaction 46 to thefinancial institution 38 confirming that the card 28 has been issued.The institution computer 38 can then activate the card 28 and updatedatabase 40 accordingly. The user 22 can immediately (in a few seconds)access the funds “on” or credited to the card 28 via an ATM 48, make apurchase at a retail facility, such as a grocery store, using a cardreader 50, online, etc.

Once the card 28 has been provided to the user 22, the user 22 can thenuse the card 28 for a purchase via card readers 50 at retail facilities,such as a grocery or clothing store, can obtain cash via an automatedteller machine 48 (ATM) and via electronic purchase using a computer 52,such as purchase from a web store like as Amazon. In each of thesesituations, a conventional electronic debit type transaction is sent tothe financial institution 38 using the routing number, card number, etc.over a financial network 54 and the amount of money on the card andstored in the database 40 of the institution is debited and a credit isissued to the financial institution associated with the purchasetransferring the purchase amount from the user 22 to the seller. Eachtime a debit occurs, the check cashing facility computer 32 can beoptionally informed so that the database 34 of the facility 22 can beupdated.

When the card is empty or when another check is to be cashed or loanobtained, the user can return to the facility 22 to cash a second check,etc. and obtain another/second or recharged card as desired. If theoriginal card 28 is a rechargeable type card (or a debit, debit/creditcard, loan type), the user 22 can chose to add the amount (less fees,etc.) of the second check or loan to the card. To do this, the card 28(rechargeable or non-rechargeable) can be scanned by the card reader 44and the information of the card 28, is displayed on the display of thefacility computer 32. In obtaining this information, the computer 32 cansend a status request transaction 54 to the financial institutioncomputer 38 using the card identifier and the institution computer 38can return the card status information obtained from the database 40 andsuch can be stored in database 34. The facility computer 32 can alsoobtain status information from the facility database 34. Thisinformation can include the card number, the amount currently on thecard (which can be an amount owed if the card 28 has a creditcapability), an amount history of funds amounts placed on the card 28, anumber of times the card 28 has been recharged, user name and address,etc. Using the status information, a form GUI can be displayed on thefacility computer 32 that allows the card to be recharged, the form iscompleted by the operator 31 with the amount to be placed on the cardand an update transaction 56 is transmitted to the computer 38 anddatabase 34 can be updated. The computer 38 can update the database 40with the added amount of funds credited to the user (and debited fromthe facility account), send an authorization transaction to the computer32 where it can be stored, the card can be updated by the card machine,verified, etc.

If the user has cashed checks or obtained loans for non-rechargeablecards a number of times or the card 28 has been recharged a number oftimes greater than a threshold number indicating that the user is a“reliable” customer for the type of the current card as set by thefacility 24 or financial institution 34 using a scoring model, such as acredit scoring model, the facility computer 32 can display a prompt tothe operator 31 to ask the user 22 if the user 22 would like to upgradethe card type from non-rechargeable to rechargeable, or fromrechargeable to debit, or from debit to debit/credit, etc. depending onthe type of the current card. If the user agrees to an upgrade, thedisplay GUI can be updated with the needed information, such as thechange to the card type, status, name address, etc. as needed for theupgraded card. The information, including the amount to be added to thecard can be sent in an upgrade update transaction to the financialinstitution, the computer 38 can change the type of card, etc. in theinstitution database 40, the institution computer 38 can send anauthorization transaction to computer 32, the facility database 34 canbe updated and the card machine can update the current card or produce anew card as needed. For example, if the card is recharged the magneticstripe or smart chip of the current card can be updated with the newbalance and if the card is an upgraded card, such as from cash to debit,the card machine 42 can produce a new card with an appropriate magneticstripe, embossing, etc.

Of course, if the card 28 is a credit type card, the amount to be addedto the card can be adjusted by a payment on the debt accumulated on thecard for any credit transactions for which the card has been used. Forexample, assume the card is the credit type, and the card has been usedto charge $100 for purchases, when a new check is cashed (or loantaken), say for $500, a payment can be automatically be made, say aminimum payment of 10% of the balance, in this case $10, on the creditcard along with accounting for fees, etc.

A process 82 (see FIG. 2) performed by the check cashing facilitycomputer 32 can begin 84 with the operator activating a button orcontrol on a GUI to indicate a new card is to be issued or by the cardreader 44 being used to scan a card. The system of the institutioncomputer 32 can determine 86 if a new card is being created, if so, thesystem can determine 88 the type of card from the inputs by theoperator. If the card type is non-rechargeable (NR), the system canobtain 90 the amount to be placed on the card 28 from the GUI 392 (seeFIG. 6) edited by the operator, send 92 the request to the computer 38and wait 94 for a reply. Note the request 92 may also include othertypes of request information, such as a request for a card upgrade.Additional information may also be included in the request, such as thecheck routing number that will allow the computer 38 to confirm that thefunds are available in the account of the writer of the check to coverthe amount of the check. If the reply from the financial institution 30is not 96 a card authorization, a message can be displayed 98 to theoperator 31 concerning the problem and the process can return to allowthe operator to start 84 the process again as desired. Or the computers32 and 38 can enter into an error correction session in which theoperator 31 is allowed to correct any information that may be causingthe failure of authorization. If the reply is an authorization, theauthorization can be stored 100 in the database 34, an appropriate cardmachine record can be created and the command to produce a card can besent 101 to the card machine 42. The card 28 can then be read 102 by thecard reader 44, the information on the card can be displayed for theoperator to verify. If the operator indicates 104 that the card iscorrect, the institution computer 32 can send 106 the activatetransaction to the computer 38 and the card can be activated 106allowing substantially immediate access to the funds by the user 22. Ifthe card 28 is not correct, a cancel transaction can be sent 108 to thecomputer 38 and the operator can start again 84. The institutioncomputer 38 can then reverse the debit to the facility master account atthe financial institution 30, reverse the credit to the newly createdcard account, and can return the card number to the pool of unassignednumbers or marked as invalid. As an alternative, the computers 32 and 38can establish an error correction session in which information in errorcan be corrected by the operator and the card verified.

If the new card is to be a rechargeable type card (rechargeable cash R,debit D, debit/credit D/C), the type information can be obtained 110from the GUI as entered by the operator, the amount of funds to beplaced on the card obtained 112, and the identity of the user 22, asneeded, can also be obtained 114 from the GUI. This information can besent 92 to the financial institution computer 38 and the newrechargeable type card can be produced, etc.

If a new card is not being created, the system, using the card numberfrom the scanned card (or as entered by the operator), can read 116 thedatabase(s) 34 (and/or sends a request to the computer 38) forinformation concerning whether the user qualifies for a card upgrade anddetermine 118 whether an upgrade is appropriate. If so, a prompt can beprovided 120 to the operator indicating a type of upgrade permitted. Theoperator can ask the user whether they would liked to upgrade the cardand explain the effect of an upgrade, such as a requirement for the user22 to provide name and address for the card. If the user accepts 122 theupgrade, the type of the card can be changed 124, the amount to be addedto the upgraded card obtained 112, along with identity information 114,as needed, and the card can be produced 101 by the card machine andgiven to the user.

If an upgrade is not warranted, the system can enter 126 the amount tobe added to the card from the operator completed GUI, send 128 an updaterequest to computer 38 and wait 130 for a reply. When the reply isreceived, it can be checked 132 to see if it is an authorization reply.If not authorized, a message as previously discussed can be displayed98. If the reply is an authorization, the authorization can be stored134 in the database 34, an appropriate card record created and a commandwith the record can be sent 136 to the card machine 42 to update thecard 28. The updated card 28 can be read 102 and verified 104 aspreviously discussed.

When the financial institution machine 38 receives 194 a transactionfrom the check cashing facility computer 32, a process 192, as depictedin FIG. 3, can be performed that includes a determination 196 as towhether the transaction concerns a new card. If so, the type of card canbe determined from the type in the received transaction. When the typeis non-rechargeable, or cash card or rechargeable cash card, a new cardnumber for a new account can be obtained 198 for the type. In thissituation a card number assignment application can be queried for thenew card and account number. The database 40 can be then updated 200with the new card/account number and the amount to be credited to thecard. The update can also debit the facility account in database 40 forthe amount credited to the card. In addition, if the transaction isbased on the cashing of a check, such as a pay check, bank routinginformation from the check can be used to confirm or verify that fundsare available sufficient to cover the check and place a hold on thefinds in the account of the writer of the check. Other types oftransaction also may need verification, such as a payday loan or ashort-term loan. Assuming that such verification procedures arecompleted successfully, an authorization to produce the new card by thefacility 24 can then be transmitted 202 to the facility computer 32 viaa secure channel over the network 36 to the facility 24 and includes thecard number, the funds amount on or credited to the card, informationassociated with embossing the card, security information, etc. withappropriate portions of the information encrypted. The system 38 canthen await 204 a reply. When a reply is received, it can be checked tosee if it is a verification transaction that allows the card to beactivated 206. When the card is to be activated, the database 40 can beupdated 206 to flag the card as active allowing access to the funds. Ifthe card is not to be activated, an appropriate message can be sent 210to computer 32 and displayed to the operator 31 who can then seek to fixany error.

When the new card type is debit or debit D/credit C/loan L, the user canbe scored 212 as to whether the institution is willing to grant a cardof the type requested to the user 22. This scoring takes into accountwhether the facility (check cash or payday loan) is granting thecredit/loan or if the institution or bank is participating in or makingthe loan or providing the credit. If the user does not pass 214 thescore test, a message can be sent 210 to the facility machine 32 anddisplayed to the operator 31 who can then address any problem. If theuser passes, the system can obtain 198 a new card number/account for thetype requested, the database 40 can be updated 200, etc.

When the received transaction (196) indicates that the card is not a newcard, the database 40 can be accessed 216 for the information associatedwith the card, the user scored 218 to determine 220 whether an upgradeis warranted. If not, the amount to be added to the card can be used toupdate 200 the database 40. Again this can involve debiting the facilityaccount and crediting the user card account. If the card is a credittype card, a payment on the credit card debt can made along with acredit to the financial institution account for the credit card payment.If the card has a savings component, the appropriate adjustments to addmoney to a savings account can be made. If an upgrade is warranted, anupgrade offer prompt message can be sent 222 to the facility machine 32where it can be displayed to the operator 31 who can query the user 22about whether the upgrade offer is accepted. The computer 38 can wait224 for a reply. If the reply indicates that the offer is not accepted226, the database 40 can be updated 200 as discussed previously. If theupgrade is accepted 226, the card type in the database 40 can updated228 (a new number is obtained, if needed), the amount updated and asneeded the address, name etc. for the user 22 can also be updated. Anauthorization for the new type card can be sent 202 to the facility forproduction or update by the card machine 42 as needed.

When the financial institution machine receives 254 a debit transaction,such as a debit transaction that the user initiates by making a purchaseat a retail store (or a cash withdrawal from an ATM), as depicted by theprocess 252 of FIG. 4, the computer 38 can access 256 the database 40 toobtain the account information (facility, facility routing number, cardtype, credit limit, if any, etc.) and funds balance information. Thetransaction can identify the source of the transaction, the amount ofthe debit, the routing number of the financial institution serving thesource, etc. The amount of the debit transaction can be compared 258 tothe account balance to determine whether there are sufficient funds inthe account for the card to cover the debit transaction. If not, thesystem can check 260 to see if the card type is a debit/credit cardtype. If not a debit type, the computer can send 262 an insufficientfunds message to the source of the debit transaction, such as the retailestablishment, to deny the debit. If the card is a credit type, thecredit limit in conjunction with the current balance can be compared 264to the debit transaction amount to determine whether the credit limitwould be exceeded by the transaction. If so, the insufficient fundsmessage can be sent 262. If there are sufficient funds or a sufficientcredit limit or a sufficient combination, the user's card accountbalance can be debited 266. The source of the transaction can be thencredited 268. If the source is a customer of the financial institution30, the account of the source in the database 40 can be credited. If thesource is not a customer of the institution 30, a credit transaction canbe sent to the financial institution of the source using the routinginstitution number in the transaction. Of course any debits/creditsneeded to reconcile this credit transaction between financialinstitutions can also be made in the books of the institutions. Thecomputer 38 can then send 270 an update of the user's balance to thefacility computer 32 where database 34 is updated, if needed.

A database 34 that can be used by the check cashing facility 24 isillustrated in FIG. 5. The database 34 can include a series of records312 associated with the issued cards and cardholders along with a record314 for the check cashing facility itself. The card record 312 includesa card identifier 316, such as a card number that appears on a typicaldebit card. If this card includes any related accounts, such a savingsaccount (that could be credited each time funds are to be added to acard, check amount−savings amount=card amount), the record would alsoinclude such account numbers linked to this ID 316. A type field 318specifies the type of card (non-rechargeable cash, rechargeable cash,debit, loan, etc). A balance field 320 can hold the current card balance(positive when cash and negative when a loan) when the facility 24 isupdated with the current balance. A reserve field 322 and a reserve timefield 324 can hold the amount of money being reserved and the amount oftime or release date indicating when the reserve amount is released tothe user 22 after a card is created or recharged. Name 326, address 328,social security number and other user identification fields can also beprovided. A financial institution identification field 330 can beprovided that can include the name address, institution identification,such as institution financial system electronic routing number. A cardstatus field 332 indicating card status (active, expired, lost, etc.)can also be provided. A card expiration date field 334 can also beincluded in the record. This database 34 can also include otherinformation not shown, such as the history of the use of the card(credit/charge and debit transactions list), credit score of the holder,an amount of each check cashed, a check cashing fee applied by thefacility, interest applied to a payday loan, a fee amount if any appliedby the financial institution 30, savings increment, etc.

The database 34 also includes the facility record 314. This record 314can have a field for storing the facility identifier 352, which like thefinancial institution ID field 330 noted above, can include checkcashing facility identification information including address, financialnetwork routing number, etc. The balance 354 of the check cashingfacility account at the financial institution associated with theidentification field therefore 356 can also be included. If the facilityprovides both check cashing and payday loan services, two fields may beneeded, one for checks cashed and one for loans made. If the facility 24interacts with more than one financial institution, the fields 354 and356 can be duplicated as many times as needed.

The database 40 of the financial institution 30 could also include thecard/user information stored in the database 34 as well as theinformation of the check cashing facility 24 (such as account balance),and in addition, can include the detail information associated with thecard transactions, such as the retailer name, retailer ID, purchase ID,type (purchase, cash withdrawal) etc. of the transactions made on thecard.

A graphical user interface (GUI) 392 that can be used for issuing newcards or recharging previously issued cards is depicted n FIG. 6. TheGUI 392 includes a balance display field or frame 394 where a currentbalance on the card is displayed. An amount of a check being cashed orpayday loan being made can be displayed in an amount frame 396. Any fee(including interest if a loan) charged by the check cashing facilityand/or the financial institution facility can be displayed in frame 398.Any reserve amount and reserve expiration date can be shown in frames400 and 402. An amount to be added to the card and available forimmediate use (check minus reserve) based on any fees, reserves, etc.can be optionally displayed (not shown). The users name and address,depending on the type of card to be issued can also be displayed inframes 404 and 406. A card identifier (ID) as issued by the financialinstitution 30 can be displayed in frame 408. A type of card can beindicated in frames 410-419. Any account linked to the card, along withany balance therein can be shown in frames 420 and 422. If the card hasa savings component or a debt payment component, a frame 424 can beprovided where the amount to be transferred is shown and which adjuststhe amount displayed in frame 394. Other frames (not shown) can also beprovided for displaying other information, such as messages from thefinancial institution, card status, credit score, etc.

Each transaction that is transmitted among the entities involved withthis system has a number of fields. For example, a non-rechargeable cashtransaction 460 (see FIG. 7) where the user is cashing a paycheck caninclude a field 462 for the amount of the check, a field 464 for theamount that is deposited on the card, a field 466 for a reserve amount,a field 468 for any fee and a field 470 for an expiration date, a field472 for the financial institution routing or identification informationand a field 474 for a facility identifier. The other transactions of thesystem will have appropriate fields as discussed herein.

The card issued to a user 22 as discussed above can be a number ofdifferent types (cash, debit, credit, etc). Additional types are alsopossible. For example, the credit card type can have an automaticpayment capability that pays on any debt that has been accumulated byusing the card. The payment can be made each time the card is rechargedor at periodic intervals, such as once a month, when the balance ispositive. The payment can be minimum amount, a fixed payment amount or apayoff that brings the debt to zero. The transfers associated with thiscard type can occur during the operations discussed above.

The card, if identity information is provided, can also include asavings component as mentioned above. The card can be associated with asavings account or type of funds accumulation account (college savings,etc) where each time the card is recharged a transfer of funds into thesavings account occurs. The transfer can also occur periodically, suchas once a month when the card has a positive balance. The amounttransferred can be a percentage of the recharge amount or card balance,a fixed amount, etc. The transfers associated with this card type canoccur during the operations discussed above.

When the card is debit/credit or credit type card, the credit capabilitycan have a low limit when initially created or upgraded to allow for“overdrafts” with the limit rising over time, as the financialinstitution or facility deems appropriate based on the credit score ofthe user, etc.

The cards can also be the type that earns interest. That is, positivebalances on the cards can earn interest for the users 22 and if so, thebalance on the card maintained by the check cashing facility may need tobe updated or the interest placed in the savings/checking component.

The user cards/accounts at the financial institution 30 can be set up assub accounts of the master check cashing facility account, allowing thecheck cashing facility to earn interest on un-spent funds on the cards.Alternatively, the cards/accounts can be set up as sub accounts of thefinancial institution master account (such as a bank master sub account)where such unspent funds provide funds available for other uses by thefinancial institution, such as overnight lending to other institutions.

If the financial institution 30 charges a fee for a new card or foradding funds to a card or for any purchase transactions made with thecard, these fees are debited from the amounted credited to the cardduring the above discussed operations.

As discussed above, this card system can be integrated with a paydayloan service where the user 22 obtains a loan in advance of a pay checkand provides a post dated check that is dated the pay day and that thefacility 24 deposits on pay day. In such a service, when the check isdeposited by the facility, the loan, that is the negative balance on thecard, can be converted into a positive balance, if using the card hasnot spent all of the funds of the check. For example, assume that theuser obtains a payday loan of $100 and with the service charge andinterest post dates a check for $110. The card has a cash balance (theloan) of $100. Assume that the user has spent $75, then when the checkis deposited, the loan of $100 becomes a positive cash balance of $25.This service will also work for a conventional short-term loan where thecard is charged with the cash amount of the loan and when the loan ispaid any balance remaining on the card becomes a positive cash balance.

The discussion above has considered a situation where a single checkcashing facility interacts with the financial system. It is possible forthere to a chain of such facilities that have a database for each siteand/or a master database for the chain is maintained for the chain. Thetransactions can be routed through a chain master computer to thefinancial system.

As mentioned above, any loans to users can be made by the facility 24 orby an entity of the financial system, such as the bank, or by both wherethe risk of default is shared. The authorization transaction sent to thebank in such a situation would include a filed indicating this type ofshared risk transaction and the credit scoring for approval of thetransaction can reflect the risk sharing. Other financial institutionscan also be involved, such as savings and loan companies and creditunions.

The card can be provided with a personal identification number (PIN)that would need to be entered into a transaction terminal for gettingcash or making purchases to discourage theft of the card.

The embodiments can be implemented in computing hardware (computingapparatus) and/or software, such as (in a non-limiting example) anycomputer that can store, retrieve, process and/or output data and/orcommunicate with other computers. The results produced can be displayedon a display of the computing hardware. A program/software implementingthe embodiments may be recorded on computer-readable media comprisingcomputer-readable recording media. The program/software implementing theembodiments may also be transmitted over transmission communicationmedia. Examples of the computer-readable recording media include amagnetic recording apparatus, an optical disk, a magneto-optical disk,and/or a semiconductor memory (for example, RAM, ROM, etc.). Examples ofthe magnetic recording apparatus include a hard disk device (HDD), aflexible disk (FD), and a magnetic tape (MT). Examples of the opticaldisk include a DVD (Digital Versatile Disc), a DVD-RAM, a CD-ROM(Compact Disc-Read Only Memory), and a CD-R (Recordable)/RW. An exampleof a communication media includes a carrier-wave signal.

Further, according to an aspect of the embodiments, any combinations ofthe described features, functions and/or operations can be provided.

The many features and advantages of the embodiments are apparent fromthe detailed specification and, thus, it is intended by the appendedclaims to cover all such features and advantages of the embodiments thatfall within the true spirit and scope thereof. Further, since numerousmodifications and changes will readily occur to those skilled in theart, it is not desired to limit the inventive embodiments to the exactconstruction and operation illustrated and described, and accordinglyall suitable modifications and equivalents may be resorted to, fallingwithin the scope thereof.

1. A process, comprising: performing a financial transaction of avariable amount of money with an individual at a non-financialinstitution where the financial transaction is one of cashing a check;requesting permission to issue from a financial institution and issuing,at the non-financial institution, a variable amount electronic fundscard of the financial institution including the variable amount; andtransferring the variable amount from a facility account of thenon-financial institution to the financial institution.
 2. A process asrecited in claim 1, wherein the financial transaction is one of making ashort-term loan and making a payday loan.
 3. A process as recited inclaim 1, wherein the card where the electronic funds card comprises anon-rechargeable and disposable, anonymous cash card where the variableamount credited to the card is adjusted responsive to a transaction feecharge and a reserve amount having a reserve time period.
 4. A processas recited in claim 1, further comprising allowing upgrading, by aprocessor, the non-rechargeable and disposable cash card to arechargeable cash card, upgrading the rechargeable cash card to a debitcard, upgrading the debit card to a debit card with a savings component,and upgrading the debit card with the savings component to a debit andcredit card with a savings component responsive to a transaction historyof the individual.
 5. A process as recited in claim 1, furthercomprising transferring a transaction amount from the financialinstitution to a third party with whom the individual conducts a thirdparty financial transaction by presenting the card for the third partytransaction to the third party and debiting the variable amount of thecard by transaction amount.
 6. A process as recited in claim 1, furthercomprising allowing the individual to add another variable amount to thecard via another financial transaction at the non-financial institutionwhere the financial transaction is one of cashing a check, making ashort-term loan and making a payday loan when the card is rechargeable.7. A process, comprising: performing a financial transaction of avariable amount of money with an individual at a non-financial facility;and issuing, at the non-financial institution, a variable amountelectronic funds card of a financial institution including the variableamount.
 8. A process as recited in claim 7, wherein the financialtransaction is one of cashing a check, making a short-term loan andmaking a payday loan.
 9. A process as recited in claim 7, wherein theelectronic funds card comprises one of a non-rechargeable/disposable,anonymous cash card, a rechargeable cash card, a debit card, a debitcard with a savings component, a debit/credit card with a savingscomponent and having the amount credited thereto.
 10. A process asrecited in claim 9, wherein the non-rechargeable/disposable cash cardcan be upgraded to the rechargeable cash card, which can be upgraded tothe debit card, which can be upgraded to the debit card with a savingscomponent and which can be upgraded to the debit/credit card with asavings component.
 11. A process as recited in claim 7, furthercomprising transferring the amount from a facility account to thefinancial institution.
 12. A process as recited in claim 11,transferring an amount from the financial institution to a third partywith whom the individual conducts a financial transaction by presentingthe card for the transaction to the third party.
 13. A process,comprising: performing a financial transaction of a variable amount ofmoney with an individual at a non-financial facility where the financialtransaction is cashing a check; and issuing, at the non-financialinstitution, a variable amount electronic funds card of a financialinstitution including the variable amount.
 14. A process as recited inclaim 13, wherein the electronic funds card comprises anon-rechargeable/disposable, anonymous cash card.
 15. A process asrecited in claim 13, wherein the card can be upgraded to a debit/creditcard with a savings component.